Northern Ireland tops the list of regions where it is cheaper to buy a house rather than rent, according to data from Trussle.
In the territory, the average monthly 90% loan-to-value mortgage repayment on a flat is £511, compared to an average regional rent of £681, says the online mortgage broker.
This is a saving of £170, or 25%, which sees the province head the broker’s list of the top five regions where buying cheaper than renting.
The average UK rent hit a record £992 in March, according to research from HomeLet Rental Index, the fourth increase in as many months.
Trussle says high rents and the reintroduction of high LTV mortgages as the pandemic eases, has left many potential first-time buyers “evaluating their finances”.
It adds: “Those who have been able to save for a deposit are considering their options to determine whether it would be more cost effective to purchase a property, than to continue renting long-term.”
Yorkshire and Humberside came second on the broker’s list, with average loan payments on a flat coming in at £638, compared to average rents of £688.
Third, is the West Midlands with average mortgage payments of £707, against rents of £746.
Next is East Midlands with mortgages at £715 and rents at £718.
Finally, came the North West where the average monthly 90% loan-to-value mortgage repayment comes to £786, compared to average regional rents of £788.
The broker says the reintroduction of higher LTV mortgages in recent months, as well as the March announcement of the government’s 95% mortgage guarantee scheme, has boosted first-time buyer activity.
It saw first-time buyer applications lift by 5% in April, compared to the same period a year ago, the firm adds.
Trussle says: “Alongside a number of competitive deals returning to market, many first-time buyers have been able to boost deposit sizes during the pandemic.
“In 2020, only 73% of first-time buyers were able to afford a deposit greater than £15,000, but in 2021 this number increased to 87%[according to Trussle internal data] which could be attributed to reduced spending during national lockdowns, as well as many first-time buyers checking in to the Hotel of Mum and Dad.”
Trussle head of mortgages Miles Robinson adds: “During 2020, higher LTV mortgage products all but disappeared from the market as lenders tightened their criteria and increased scrutiny towards borrowers.
“However, in the last few months, many lenders have brought back 90% LTV mortgages and the recent mortgage guarantee scheme announced by the government has also seen major banks including Nationwide and Barclays re-introduce 95% LTV deals.
“This is great news for first-time buyers who typically have lower deposits, as these high LTV deals provide an accessible route on to the housing ladder and can often result in more affordable monthly payments than renting.”
